Clothing company boss admits fraud

The director of Canterbury clothing manufacturer Lane Walker Rudkin Industries has admitted fraud charges arising from its failure in 2009.

Kenneth James Anderson, 66, pleaded guilty to four representative charges laid by the Serious Fraud Office (SFO) in Christchurch District Court on Monday.

Anderson admitted three representative Crimes Act charges of dishonestly using a document.

He fabricated financial statements which were used to obtain and retain lending facilities from Westpac totalling $NZ118 million ($A105.04 million).

He also pleaded guilty to a further representative charge relating to the use of false documentation to obtain funds under a letter of credit facility provided by Westpac.

Judge Jane Farish told him he'd likely face a lengthy prison term when sentenced next month.

The three Crime Act charges carry a maximum prison term of seven years.

SFO acting director Simon McArley said: "LWR employed many staff and enjoyed an international reputation. The scale and impact of Mr Anderson's fraud was extensive. SFO are pleased to bring some closure to his involvement in this investigation".

Anderson was originally facing 82 charges.

The SFO launched an investigation in 2009 after the company's receivers, BDO Spicers, raised concerns following its collapse earlier that year.

Anderson and another individual were charged in July 2011.

A trial for the other defendant, facing eight charges, began on Monday.

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